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I believe the point that Michelle is trying to make is that payroll, which is usually the single biggest expense in a company, is the concern of a CEO, and inflation pushes it up. That is true, but it is not the worst effect on the economy overall...Historically, from ancient Greece to the present, debtors have sought inflation, whether through debasement, or bi-metallism, or some other expedient, in order to degrade the value of contracted debts. The problem is that an expedient which helps debtors destroys lending institutions, and makes surviving lendors wary of terms. Since markets cannot survive without a reasonable flow of credit, inflation does the most damage overall.... |
